Companies fail to reach its target due failure to plan strategically and inefficient management. Strategic planning gives the direction an organization is going over the next year or more, how it’s going to get there and how to assess if it got there or not. Strategic management is a set of managerial skills that should be used throughout the organization, in a wide variety of functions in order to achieve the targeted objectives. Therefore strategic plan focus is usually on the entire organization, whereas strategic management focuses on Managerial skills.

Clearly define the purpose of the organization and establishment realistic goals and objectives consistent with that mission in defined time frame within the organization’s capacity for implementation.

Communicate those goals and objectives to the organization’s constituents.

Develop a sense of ownership of the plan.

Ensure the most effective use is made of the organization’s resources by focusing the resources on the key priorities.

Provide base from which progress can be measured and establish a mechanism for informed change when needed.

Bring together of everyone;s best and most reasoned efforts have important value in building a consensus about where an organization is going.

Provide clearer focus of organization,producing more efficiency and effectiveness.

Bridges staff and board of director (in case of corporations).

Builds strong teams in the board and the staff (in case of corporations).

Provides the glue that keeps the board together (in case of corporations).